Is Buying A Short Sale For You?

Everywhere you look these days there are many great real estate deals to be found whether you are in Florida, California or Massachusetts. However short sales continue to offer many benefits for home buyers beyond incredible prices.

For those of you unfamiliar with short sales a short sale is when a bank or mortgage lender agrees to allow a property to be sold for less than the outstanding loan balance. With many homeowners underwater on their mortgages this is really the only alternative to foreclosure. This allows sellers to get out from under the debt without a foreclosure on their credit report and saves banks thousands in foreclosure costs.

Homes bought via a short sale can often be grabbed up with discounts between 30-70% of what is owed on the property. This means a property that was purchased for $300,000 just a couple of years ago can now be bought for just $100,000! Exactly how much you can save depends on the state of the property, its location, how poorly the lenders other loans are performing and how well put together the offer is.

However beyond just the fabulous prices and discounts that you will find on short sales you will many other benefits. While foreclosure properties bought at auctions and as REOs from banks after they have taken possession of them offer similar discounts they are also often in notoriously poor shape. Between the previous owners stripping homes before they are evicted including everything from appliances to cabinets and even the plumbing and properties being vandalized after being left vacant you can just imagine how much extra cash you may have to put into these properties. In comparison short sales are often found in pristine condition as they have recently been lived in and improved.

Recent news headlines have also highlighted many issues surrounding the title on many foreclosure homes. These issues won’t be found when buying a short sale as the seller and lender are working together to make the deal happen. This will not only ensure that you get clear title to your property but will ensure no problems in obtaining title insurance.

While short sales certainly offer incredible opportunities for both real estate investors and those looking for new residences you must still make sure that you are working with an experienced professional on your side. As with any dealings with banks they are very particular about how offers and paperwork needs to be submitted and without the right person on your side you could face months of waiting in vain.

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